A game-theoretical study on dynamic strategic externality under the economic integration of East Asian region

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This research analyzes the function and role of national planning regarding infrastructure policy in the era of globalization. The following facts are derived through a game-theoretic analysis. 1) If countries determine the investment level of international infrastructure such as hub airports in the decentralized manner, the realized investment level can be excessive due to the coordination failure. 2) Public announcement regarding the infrastructure policy in the future can eliminate the case of coordination failure of infrastructure investment level and hence achieve the first-best efficiency. 3) A country with the higher ability to commit to the national plan, the more likely to realize the more favorable equilibrium state.